It’s Official: Skype founders settle, join investor group

EBay Inc. said today that the investor group buying a majority stake in Skype has reached a settlement agreement with the founders of the online calling service, clearing the way for the deal to proceed.

Niklas Zennstrom and Janus Friis sold Skype to eBay in 2005, but claim they retained ownership of the underlying software code. They filed lawsuits against eBay, claiming it broke the licensing terms of the deal, as well as the investors planning to buy the service.

EBay Inc. said in early September it agreed to hand over its controlling stake in Skype to a consortium led by Menlo Park private-equity firm Silver Lake for $1.9 billion in cash and a note worth $125 million. The other parties included Index Ventures, Canada Pension Plan Investment Board and Andreessen Horowitz.

Under the agreement, the founders’ companies, Joltid Ltd. and Joost N.V., hand over ownership of all the software and end the litigation upon the closing of the acquisition. In addition, Zennstrom and Friis will join the investor group, contributing Joltid software and a capital investment in exchange for a 14 percent stake in Skype.

The deal, which values Skype at $2.75 billion, is expected to close in the fourth quarter.

“Skype will be well positioned to move forward under new owners with ownership and control over its core technology,” said eBay Inc. Chief Executive John Donahoe in a statement. “At the same time, eBay continues to retain a significant stake in Skype and will benefit from its continued growth.”

Silver Lake Managing Director Egon Durban said in a statement: “We are very pleased to have the litigation resolved. We remain confident in a great future for Skype, and we look forward to working with Niklas, Janus and the other investors as partners to help the company achieve its full potential.”